A company has cash of $800, current liabilities of $500, and long-term liabilities of
$600. If the cash ratio is 2.5, then marketable securities must be
a. $ 700.
b. $ 800.
c. $ 450.
d. $2,000.
Refer to Randstad, Inc. The dividend yield ratio for 2015 is
Randstad, Inc.
Information from the financial statements is provided below:
a. 1.6%.
b. 1.8%.
c. 2.6%.
d. 3.0%.
Unearned Revenues
Several accounts from the financial records of Wynn Linders, Inc. are listed. Indicate its
normal balance and the debit/credit rules for increasing the account. (Choices may be
used more than once.)
Service Revenues
Several accounts from the financial records of Wynn Linders, Inc. are listed. Indicate its
normal balance and the debit/credit rules for increasing the account. (Choices may be
used more than once.)
The amount of sales expected to be collectible after deducting discounts and returns and
allowances.
Match each statement to the item listed below
a. Bad debt expense d. Percentage of credit sales
b. Net sales revenue e. Profitability ratios
c. Nontrade receivables f. Trade receivables
Refer to Happy Heights Country Club. Which of the following describes the
transactions which occurred on July 7th?
Happy Heights Country Club
Selected accounts at July 31 are provided below:
a. sold club membership on credit
b. collected revenue in advance
c. collected accounts receivable
d. sold club membership for cash
Which of the following statements is true?
a. If a debit entry is made to an account in the general journal, the same account will
receive a credit entry when the amount is posted to the general ledger.
b. If all transactions are correctly posted to the general ledger, the sum of the accounts
with debit balances should be equal to the sum of the accounts with credit balances.
c. Posting occurs when numbers in the general ledger accounts are transferred to the
general journal.
d. If the sum of the debit balances equals the sum of the credit balances, this proves that
there were no mistakes made in the posting process.
Common stock usually has all of the following features except
a. voting rights.
b. preemptive right.
c. residual claim to net assets.
d. conversion privilege.
Medicare taxes For each of the types of payroll taxes and other payroll-related items
listed, indicate whether it is paid by the employee through a paycheck withholding, by
the employer, or both. (Choices may be used more than once.)
a. Employee
b. Employer
c. Both
The process of transferring amounts from the book of original entry into specific
account records is referred to as
a. journalizing.
b. posting.
c. analyzing.
d. classifying.
The following information was taken from the financial records of Mr. Transmission:
How would the change in accounts payable be reported in the operating activities
section of the statement of cash flows under the indirect method?
a. As an addition to operating expenses.
b. As a deduction from operating expenses.
c. As an addition to net income.
d. As a deduction from net income.
Research and development costs Identify where each of the following accounts would
be reported on the financial statements. (Choices may be used more than once.)
a. Balance Sheet-Property, Plant, and Equipment
b. Balance Sheet-Intangible Assets
c. Balance Sheet-Current Assets
d. Balance Sheet-Other Assets
e. Income Statement-Operating Section
f. Income Statement-Other Revenue and Expense Section
Refer to HVAC Service. The journal entry to record the bill received from WKRP Radio
will include a debit to
HVAC Service
The following transactions occurred during November:
a. accounts receivable.
b. cash.
c. advertising expense.
d. accounts payable.
To revise depreciation expense, the accountant should compute depreciation expense
using the asset’s remaining book value and useful life and its new residual value.
____________________ are commitments that represent probable future sacrifices of
economic benefits.
Matching requires expenses be recorded and reported in the same period as the revenue
that it helped to generate.
____________________ refers to the likelihood that a company will be able to pay its
current obligations as they come due.
Riverdale Drugs has an inventory turnover ratio of 15 times while RJ’s Drugs has an
inventory turnover of 14 times. RJ’s is less efficient in managing its inventory.
Current assets include all of the following: cash, inventory, equipment, supplies, and
accounts receivable.